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Old 11-13-2010, 09:07 AM   #6 (permalink)
Dizzy
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Goods manufactured in the US or Mexico can are brought into Canada duty free under NAFTA. You will however need to pay any and all taxes you would normally pay in your province when you purchase something.

Duty rates vary greatly but they are only based on what category the goods fall into, not the country they are coming from. For instance, textiles such as linen or bedding - 20%, Clothing - 18%, Groceries - 7%, Auto parts - 8%, oddly enough, motorcycle parts - 0%. The rates and percentages are all over the map.

Brokerage fees can be just plain silly. UPS for instance charges a flat rate based on the value of the gods crossing the border. That seems strange to me because every item entering requires the same paperwork regardless of the value. It is quite simply a cash grab. If you buy something for $5000 and have it imported, the brokerage fee is $76.20, so proportionately, that doesn't seem so bad. However, if you buy something for $42, the brokerage fee is $19.45 which proportionately is outrageous! You can see the rates here. These rates are often exagerated, but those are the actual amounts charged. They haven't changed recently either, they've been at these levels for years.

Canada Post does not have any agreement with USPS as far as I know not to charge brokerage. They are simply set up as a government agency to do it. The charge a flat fee of $5 regardless of the value.

The simple solution for avoiding brokerage is to ship via postal service. Unless it is a huge dollar item, I will never ship via a courier as the fees eliminate any possible savings. It will take a week longer for the package to arrive, but it is seldom I am in that much of a hurry. I also find packages arrive in much better condition via postal service than any courier.

A lot of American manufacturers and retailers will not ship to Canada. For that, I keep a postal box in Niagara Falls NY and have things mailed there. A quick 1 hour trip to retrieve it, and no brokerage paperwork required. You simply tell customs when you return what you have. If it’s not a huge amount and the officer is in a good mood, they’ll usually let you go without paying the tax.

As for the whole “we’re raped in Canada” arguement, sorry, but there are reasons for duties and taxes when you bring things into the country. If you could buy things in the US and bring them here tax and duty free, our manufacturing and retail industry would most likely collapse and subsequently, so would our economy. Are we over taxed, you bet. But on the whole, do we enjoy a higher standard of living than most countries in the world, yes, we do. That is also part of being Canadian. People who instantly scoff at our taxes and compare us to other countries tax rates seldom take into account the rest of the economic conditions that accompany them. If the biggest gripe you have in the world is the amount of tax you have to pay on your modifications for your Z, count yourself very lucky. There are a lot of people south of the border worried about things like employment and foreclosure. I’ll keep my tax rate and other unpalatable things to avoid the other things that accompany “cheap goods”.

Ever see the bumper sticker....”Unemployed Yet? Keep buying foreign and you will be.”
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Last edited by Dizzy; 11-13-2010 at 09:12 AM.
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